Lawmakers hit banks, regulators on foreclosures

[Joanne98]

Source: Reuters

Lawmakers pressed major banks and federal regulators on Thursday to explain how they allowed faulty paperwork problems to fester into a controversy that could slow home sales and raise costs for new borrowers.

Major lenders admitted to sloppy documentation in testimony to a House of Representatives' subcommittee but said they had taken steps to tighten procedures and that the basis of their foreclosures has been accurate.

It was the second congressional hearing this week into revelations that lenders have used "robo-signers" to sign hundreds of foreclosure documents a day without proper legal reviews.

"I want to know, given the problems in the mortgage servicing industry -- problems which have been apparent for years -- what are government and industry witnesses intend to do to fix these problems and why any of them should keep their jobs," said Maxine Waters, who chairs the House Financial Services housing subcommittee.



Read more: http://www.reuters.com/article/idUSTRE6AA4AU20101118

[Xipe Totec]

1. Now bank robbers can claim it was just sloppy withdrawal practices nt